2 minute read
Natural Gas fuels the Future
By Dan McVey, Vice President & Chief Operating Officer — Gas Operations
Natural gas is a domestic resource that is found in abundance in the United States. It is a home-grown North American fuel which is highly efficient and its use by power plants contributes to cleaner air. Homeowners enjoy natural gas for its comfort and warmth. Policymakers recognize its contribution to American energy independence.
Increasing the impact
• Natural gas continues to be a popular transportation fuel. In the U.S., there are nearly 2,000 fueling stations and about 175,000 natural gas vehicles (NGVAmerica).
• The shale gas boom has helped lower emissions and cost of living. Every mile of pipeline creates 58 temporary jobs including 10 in manufacturing (IHS Energy).
• Natural gas electricity generation represents about 40% of all sources of generation nationwide (Energy Information Association, EIA).
• U.S. LNG exports set a monthly all-time record of 9.8 billion cubic feet per day (Bcf/d) in January 2021. LNG exports exceeded natural gas exports by pipeline by nearly 1.2 Bcf/d in November 2020 (EIA).
• The United States became an annual net exporter of natural gas in 2018, with net exports averaging 0.6 Bcf/d (EIA).
• From 2014 to 2020, the U.S. completed construction on 33 new natural gas pipelines (EIA).
Forecasting the future
• The future supply of natural gas (reserves plus resources) exceeds 3,374 trillion cubic feet. (Potential Gas Committee).
• The World Bank forecasts U.S. natural gas prices will reach $4 per MMbtu by 2030, compared to $7 for Europe.
• As of April 2021, there were over 100 pipeline projects under construction in the U.S. (EIA).
• U.S. LNG export capacity is forecast to average 8.5 Bcf/d in 2021 and 9.2 Bcf/d in 2022 (EIA).
• U.S. gross natural gas pipeline export capacity is expected to average 8.8 Bcf/d in 2021 and 9.9 Bcf/d in 2022 (EIA).
• U.S. consumption of natural gas is forecast to average 82.9 Bcf/d in 2021, down 0.4% from 2020 (EIA).
• The amount of gas-fired generating capacity over the next several years is expected to increase, although its share of total capacity will decrease due to the growth of non-hydro renewables (EIA).
• Natural gas technologies also continue to improve, including lower-cost, high-efficiency appliances, gas heat pumps, small-scale generation, combined heat and power (CHP) systems and fueling facilities for natural gas vehicles.
